Nu Skin Enterprises (NUS) Tops Q3 EPS by 19c; Issues Weak Q4 Outlook

Nu Skin Enterprises (NYSE: NUS) reported Q3 EPS of $1.12, $0.19 better than the analyst estimate of $0.93. Revenue for the quarter came in at $638.8 million versus the consensus estimate of $628.83 million.

Regional Results

Greater China. In Greater China, third-quarter revenue declined 50 percent to $226.7 million when compared to the prior-year period, which included $153.6 million of limited-time offer (LTO) sales, compared to $59.3 million of LTO sales in the third quarter of 2014. The region's results were not impacted by foreign currency fluctuations. The sales leader count in the region declined 57 percent, while the number of actives declined 43 percent compared to the prior-year period. This decline is primarily a result of the company's temporary, self-imposed restriction on sales leader recruitment earlier this year. Results for the region reflect third-quarter sales in Mainland China down 1 percent versus the second quarter of 2014.

North Asia. Third-quarter revenue in North Asia increased 2 percent to $205.5 million, compared to $202.4 million for the same period in 2013. The region's results were positively impacted 2 percent by foreign currency fluctuations. South Korea generated local-currency revenue growth of 6 percent while Japan local-currency revenue declined 9 percent. The number of sales leaders in the region declined 5 percent and the number of actives declined 7 percent.

South Asia/Pacific. Revenue in South Asia/Pacific was $88.9 million, a 30 percent decline compared to the prior-year period, which included $45.7 million in LTO sales. The region's results were negatively impacted 1 percent by foreign currency fluctuations. The region's third-quarter sales leaders and actives declined 15 and 3 percent, respectively, compared to the same period in 2013.

Americas. Currency fluctuations in the Americas region offset 19 percent local-currency growth, with reported revenue in the Americas declining 10 percent to $76.7 million, compared to $84.8 million in the prior-year period. The currency impact was primarily driven by the devaluation of currency in Venezuela. The number of sales leaders in the region declined 3 percent and the number of actives improved 4 percent compared to the prior-year period.

EMEA. Revenue in the EMEA region was $40.9 million, an 8 percent decline from the prior-year period. The region's results were negatively impacted 1 percent by foreign currency fluctuations. Sales leaders declined 6 percent, and actives declined 7 percent, compared to the prior-year period.

Nu Skin Enterprises sees Q4 2014 EPS of $0.80 - $0.85, versus the consensus of $1.01. Nu Skin Enterprises sees Q4 2014 revenue of $590 - $610 million, versus the consensus of $658.5 million.

For earnings history and earnings-related data on Nu Skin Enterprises (NUS) click here.

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